SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 2000
----------------------------------------------------------
Commission File Number 0-12938
Invacare Corporation
(Exact name of registrant as specified in its charter)
Ohio 95-2680965
(State or other jurisdiction of (IRS Employer Identification No)
incorporation or organization)
One Invacare Way, P.O. Box 4028, Elyria, Ohio 44036
(Address of principal executive offices)
(440) 329-6000
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if change since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 12 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date:
As of May 11, 2000, the company had 28,644,658 Common Shares and 1,432,031 Class
B Common Shares outstanding.
1
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INVACARE CORPORATION
INDEX
Part I. FINANCIAL INFORMATION: Page No.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheet -
March 31, 2000 and December 31, 1999.........................3
Condensed Consolidated Statement of Earnings -
Three Months Ended March 31, 2000 and 1999...................4
Condensed Consolidated Statement of Cash Flows -
Three Months Ended March 31, 2000 and 1999...................5
Notes to Condensed Consolidated Financial
Statements - March 31, 2000..................................6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................9
Item 3. Quantitative and Qualitative Disclosure of Market Risk...............13
Part II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K.....................................14
SIGNATURES....................................................................14
2
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Part I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
<TABLE>
<CAPTION>
INVACARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet - (unaudited)
March 31, December 31,
2000 1999
ASSETS (In thousands)
- ------ --------------------------------
<S> <C> <C>
CURRENT ASSETS
.........Cash and cash equivalents $ 18,648 $18,258
.........Marketable securities 1,453 1,593
.........Trade receivables, net 180,685 181,550
.........Installment receivables, net 69,963 70,378
.........Inventories 110,080 108,535
.........Deferred income taxes 26,090 26,561
.........Other current assets 11,008 11,745
-------------------------------
......... TOTAL CURRENT ASSETS 417,927 418,620
OTHER ASSETS 77,807 71,316
PROPERTY AND EQUIPMENT, NET 139,468 137,132
GOODWILL, NET 319,010 328,217
-------------------------------
......... TOTAL ASSETS $954,212 $955,285
===============================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
.........Accounts payable $62,793 $58,367
.........Accrued expenses 84,037 97,156
.........Accrued income taxes 17,668 15,547
.........Current maturities of long-term obligations 8,449 6,401
------------------------------
......... TOTAL CURRENT LIABILITIES 172,947 177,471
LONG-TERM DEBT 436,056 440,795
OTHER LONG-TERM OBLIGATIONS 17,492 18,147
SHAREHOLDERS' EQUITY
.........Preferred shares 0 0
.........Common shares 7,282 7,282
.........Class B common shares 358 358
.........Additional paid-in-capital 79,055 79,470
.........Retained earnings 261,555 251,955
.........Accumulated other comprehensive earnings (10,398) (8,976)
.........Treasury shares (10,135) (11,217)
------------------------------
......... TOTAL SHAREHOLDERS' EQUITY 327,717 318,872
------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$954,212 $955,285
===============================
</TABLE>
See notes to condensed consolidated financial statements.
3
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INVACARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Earnings - (unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
-------------- --------------
(In thousands except per share data)
<S> <C> <C>
Net sales $244,303 $196,092
Cost of products sold 171,423 139,355
-------------- -------------
Gross profit 72,880 56,737
Selling, general and administrative expense 51,425 39,747
-------------- -------------
Income from operations 21,455 16,990
Interest income 1,737 1,872
Interest expense (6,841) (4,940)
-------------- -------------
Earnings before income taxes 16,351 13,922
Income taxes 6,377 5,430
-------------- -------------
NET EARNINGS $ 9,974 $ 8,492
============= =============
DIVIDENDS DECLARED PER COMMON SHARE .0125 .0125
============= =============
Net earnings per share - basic $ 0.33 $ 0.28
============= =============
Weighted average shares outstanding - basic 29,998 29,957
============= =============
Net earnings per share - assuming dilution $ 0.33 $ 0.28
============= =============
Weighted average shares outstanding - assuming dilution 30,503 30,513
============= =============
</TABLE>
See notes to condensed consolidated financial statements.
4
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INVACARE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows - (unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000
(In thousands)
-----------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net earnings $ 9,974 $ 8,492
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 7,849 5,998
Provision for losses on receivables 2,256 (225)
Provision for deferred income taxes 1,067 (1,302)
Provision for other deferred liabilities (1,172) 517
Changes in operating assets and liabilities:
Trade receivables (2,666) (6,479)
Inventories (3,384) (1,374)
Other current assets 561 661
Accounts payable 7,478 877
Accrued expenses (8,179) 4,351
-----------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,784 11,516
INVESTING ACTIVITIES
Purchases of property and equipment (8,332) (4,619)
Capitalized consulting costs (677) (3,532)
Proceeds from sale of property and equipment 61 45
Installment sales contracts written (17,691) (17,173)
Payments received on installment sales contracts 19,053 17,738
Marketable securities purchased (95) (416)
Marketable securities sold 116 260
Increase in other investments (25) (152)
Increase in other long term assets (7,269) (2,454)
Other (600) (320)
-----------------------
NET CASH REQUIRED BY INVESTING ACTIVITIES (15,459) (10,623)
FINANCING ACTIVITIES
Proceeds from revolving lines of credit and long-term borrowings 24,194 24,614
Principal payments on revolving lines of credit, long-term debt
and capital lease obligations (21,364) (25,905)
Proceeds from exercise of stock options 452 1,353
Payment of Dividends
(372) (375)
-----------------------
NET CASH (REQUIRED)/PROVIDED BY FINANCING ACTIVITIES
2,910 (313)
Effect of exchange rate changes on cash (845) 1,108
-----------------------
Increase in cash and cash equivalents 390 1,688
Cash and cash equivalents at beginning of period 18,258 9,460
-----------------------
Cash and cash equivalents at end of period $ 18,648 $ 11,148
========================
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
INVACARE CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated
Financial Statements
(Unaudited)
March 31, 2000
Nature of Operations - Invacare Corporation and its subsidiaries (the "company")
is the world's leading manufacturer and distributor of non-acute health care
products based upon its distribution channels, the breadth of its product line
and sales. The company designs, manufactures and distributes an extensive line
of health care products for the non-acute care environment including the home
health care, retail and extended care markets. The company's products include
standard manual wheelchairs, motorized and lightweight prescription wheelchairs,
motorized scooters, patient aids, home care and institutional beds, low air loss
therapy products, home respiratory products, seating and positioning products,
bathing equipment and distributed products.
Principles of Consolidation - In the opinion of the company, the accompanying
unaudited condensed consolidated financial statements are prepared in accordance
with generally accepted accounting principles which require management to make
estimates and assumptions that affect the amounts reported in the financial
statements. Actual results may differ from these estimates. The accompanying
financial statements include all adjustments, which were of a normal recurring
nature, necessary to present fairly the financial position of the company as of
March 31, 2000 and the results of its operations for the three months ended
March 31, 2000 and 1999 and changes in its cash flows for the three months ended
March 31, 2000 and 1999. The results of operations for the three months ended
March 31, 2000, are not necessarily indicative of the results to be expected for
the full year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. These condensed consolidated financial
statements should be read in conjunction with the consolidated financial
statements contained in the company's annual financial statements and notes.
Business Segments - The company operates in three primary business segments
based on geographical area: North America, Europe and Australasia. The three
reportable segments represent operating groups which offer products to different
geographic regions.
The North America segment consists of five operating groups which sell the
following products: wheelchairs, scooters, seating products, self care patient
aids, home care beds, low air loss therapy products, patient transport products,
distributed products, extended care and furniture products, respiratory and
other products. The Europe segment consists of one operating group that sells
primarily wheelchairs, scooters, beds, seating, self care patient aids, patient
lifts and slings and respiratory products. The Australasia segment consists of
two operating groups which sell custom power wheelchairs, electronic wheelchair
components and patient aids. Each business segment sells to the home health
care, retail and extended care markets.
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The company evaluates performance and allocates resources based on profit or
loss from operations before income taxes for each reportable segment. The
accounting policies of each segment are the same as those for the company's
consolidated financial statements. Intersegment sales and transfers are based on
the costs to manufacture plus a reasonable profit element. Therefore,
intercompany profit or loss on intersegment sales and transfers are not
considered in evaluating segment performance. Intersegment revenue for
reportable segments was $16,213,000 for the period ended March 31, 2000 and
$12,874,000 for the same period a year ago.
The information by segment is as follows (in thousands):
Three Months Ended
March 31,
2000 1999
--------------------------
Revenues from external customers
North America $175,658 $158,853
Europe 60,472 31,954
Australia/Asia 7,601 5,277
All Other * 572 8
---------------------------
Consolidated $244,303 $196,092
Earnings (loss) before income taxes
North America $28,052 $ 23,843
Europe 394 (1,739)
Australia/Asia 2,289 1,521
All Other * (14,384) (9,703)
---------------------------
Consolidated $ 16,351 $ 13,922
* Consists of the domestic export unit, corporate selling, general and
administrative costs, and the Invacare captive insurance unit, which do not
meet the quantitative criteria for determining reportable segments.
Comprehensive Earnings - Total comprehensive earnings were as follows (in
thousands):
Three Months Ended
March 31,
2000 1999
--------------------------
Net earnings $9,974 $8,492
Foreign currency translation (loss) (1,890) (137)
Unrealized gain or (loss) on available
for sale securities 468 (552)
---------------------------
Total comprehensive earnings $8,552 $7,803
===========================
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Net Income Per Common Share - The following table sets forth the computation of
basic and diluted net earnings per common share for the periods indicated.
Three Months Ended
March 31,
2000 1999
------------------------
(In thousands except per
share data)
Basic
Average common shares outstanding 29,998 29,957
Net earnings $9,974 $8,492
Net earnings per common share $ .33 $ .28
Diluted
Average common shares outstanding 29,998 29,957
Stock options 505 556
------------------------
Average common shares assuming dilution 30,503 30,513
Net earnings $9,974 $8,492
Net earnings per common share $ .33 $ .28
Recently Issued Accounting Pronouncements - In June, 1998, the Financial
Accounting Standards Board (FASB) issued SFAS No. 133, Accounting for Derivative
Instruments and for Hedging Activities. This statement requires all derivatives
to be recorded on the balance sheet at fair value and establishes "special
accounting" for certain types of hedges. The statement is effective for years
beginning after June 15, 2000. Management is currently studying the potential
effects of the adoption of this statement but does not anticipate a significant
impact on the company's financial position or results of operations.
Statement of Cash Flows - The company made payments (in thousands) of :
Three Months Ended
March 31,
2000 1999
------------------------
Interest $8,389 $6,412
Income taxes 3,052 1,824
Inventories - Inventories consist of the following components (in thousands):
March 31, March 31,
2000 1999
------------------------
Raw materials $ 32,888 $ 33,564
Work in process 15,501 16,825
Finished goods 61,691 58,146
------------------------
$ 110,080 $108,535
=========================
8
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The final inventory determination under the LIFO method is made at the end of
each fiscal year based on the inventory levels and cost at that point,
therefore, interim LIFO determinations are based on management's estimates of
expected year-end inventory levels and costs.
Property and Equipment - Property and equipment consist of the following (in
thousands):
March 31, December 31,
2000 1999
------------------------
Land, buildings and improvements $ 58,233 $ 58,974
Machinery and equipment 169,795 163,717
Furniture and fixtures 15,057 14,776
Leasehold improvements 10,064 9,985
------------------------
253,149 247,452
Less allowance for depreciation (113,681) (110,320)
------------------------
$139,468 $137,132
========================
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
RESULTS OF OPERATIONS
NET SALES
Net sales for the three months ended March 31, 2000 were $244,303,000 compared
to $196,092,000 for the same period a year ago, representing a 25% increase.
Excluding the net impact from acquisition and currency translation, overall
sales increased 10%. The increase was driven primarily by strong increases in
North American and Australasian sales principally do to higher unit volume sales
in both segments.
North American Operations
North American sales, consisting of Rehab (power wheelchairs, custom manual
wheelchairs and seating), Standard (manual wheelchairs, personal care and
retail), Beds and Continuing Care (beds, low air loss therapy and furniture and
patient transport equipment), Respiratory (oxygen concentrators, liquid oxygen,
aerosol therapy and associated respiratory) and Distributed (ostomy,
incontinence, wound care and other medical supplies) products, increased 11%
from the prior year. The gain was due principally to unit volume growth in
Distributed products (up 18%) and Standard products (up 14%). Canada also
experienced significant growth as sales increased 26% over the prior period.
European Operations
European sales increased to $60,472,000 from $31,954,000 in the prior year with
the acquisition of Scandinavian Mobility International (SMI) increasing sales by
$32,877,000. On a pro-forma basis taking into consideration SMI, European sales,
excluding a negative impact of 13% from foreign currency, increased 6% from the
same period a year ago.
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Australasia Operations
The Australasia products group consists of Invacare Australia, which imports and
distributes the Invacare range of products and manufactures and distributes the
Rollerchair range of custom power wheelchairs and Dynamic Controls, a New
Zealand manufacturer of operating components used in power wheelchairs. Sales
for the Australasia group increased over 50%, excluding the negative impact of
8% from foreign currency translation. Sales were positively impacted by new
product introduction and continued expansion into Australia which began in 1999.
GROSS PROFIT
Gross profit as a percentage of net sales for the three month period ended March
31, 2000 was 29.8% compared to 28.9% for the same period last year. Margins for
North American operations were 28.1%, in line with margins reported in the prior
year. Gross profit for Europe and Australasia improved with Europe margins
positively impacted by the acquisition of SMI, which has margins, as a percent
to sales, higher than the existing European operations. The overall increase in
margins as a percentage of net sales is a result of the company's manufacturing
cost improvements and the company's focus on redesigning products in order to
lower manufacturing costs while improving quality and reliability.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expense as a percentage of net sales for the
three months ended March 31, 2000 was 21.0% compared to 20.3% in the same period
a year ago. The dollar increase was $11,678,000 or 29.4% with acquisitions
accounting for $8,417,000 or 21.2% of the dollar increase. Excluding the impact
of acquisitions and foreign currency, selling, general and administrative
expense as a percent of sales remained relatively flat with the prior year.
North American selling, general and administrative costs as a percentage of net
sales increased by approximately 1% from the prior year. The overall dollar
increase was $5,144,000 with approximately $329,000 related to acquisition and
foreign currency impact. European and Australasia operations' selling, general
and administrative costs grew at a slower rate than sales for the quarter.
NON-RECURRING CHARGE
In 1999, the company announced non-recurring and unusual charges of $14,800,000
($9,028,000 or $.29 diluted per share after-tax) primarily related to the
acquisition of Scandinavian Mobility International AS ("SMI"). Of these charges,
$6,514,000 have been utilized through March 31, 2000 including $308,000 and
$257,000 in the first quarter of 2000 for exit costs, and asset write-downs and
other non-recurring items, respectively. The company anticipates all of the
remaining charge to be utilized in 2000.
INTEREST
Interest income in the three months ended March 31, 2000 declined by
approximately $135,000 compared to the same period a year ago, as decreased
volume in customer loan refinancing was offset by an overall increase in the
portfolio's effective rate. The company has significantly tightened its
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refinancing policy thereby reducing the number of refinances written in the
quarter. The company believes its overall long-term profitability will be
positively impacted by the change in policy.
For the quarter, interest expense increased due to higher average outstanding
borrowings resulting primarily from the acquisition of Scandinavian Mobility
International A/S in the third quarter of 1999.
INCOME TAXES
The company had an effective tax rate of 39.0% which is the same effective tax
rate in the same period a year ago.
LIQUIDITY AND CAPITAL RESOURCES
The company's reported overall level of long-term obligations decreased $4.7
million to $436.1 million for the three months ended March 31, 2000 . The
company continues to maintain an adequate liquidity position to fund its working
capital and capital requirements through its cash flow from operations and its
bank lines. As of March 31, 2000, the company had approximately $107.3 million
available under its lines of credit. Pursuant to the most restrictive covenant
of its debt arrangements the company could borrow up to an additional $174
million.
The company's financing arrangements require it to maintain certain conditions
with respect to net worth, working capital, funded debt to capitalization and
interest coverage as defined. The company is in compliance with all of the
conditions.
CAPITAL EXPENDITURES
There were no material capital expenditure commitments outstanding as of March
31, 2000. The company expects to invest in capital projects at a rate that
equals or exceeds depreciation and amortization in order to maintain and improve
the company's competitive position. The company estimates that capital
investments for 2000 will approximate $28 million. The company believes that its
balances of cash and cash equivalents, together with funds generated from
operations and existing borrowing facilities will be sufficient to meet its
operating cash requirements and fund required capital expenditures for the
foreseeable future.
ACQUISITIONS
Effective July 31, 1999, IVC Holdings Denmark A/S ("Holdings"), a wholly owned
subsidiary of Invacare Corporation, acquired substantially all of the
outstanding shares of common stock of Scandinavian Mobility International A/S
("SMI"), a Danish corporation for approximately $142 million in cash. The
acquisition was accounted for under the purchase method of accounting. The
excess of the purchase price over the estimated fair value of the common stock
acquired is being amortized over 40 years. SMI is a producer and distributor of
rehabilitation products, mobility aids and related products in Europe.
11
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CASH FLOWS
Cash flows provided by operating activities were $13.8 million for the first
quarter of 2000 compared to $11.5 million in 1999. Operating cash flows
increased in 2000 as a result of a change in trade receivables offset to some
extent by the net change in accounts payable and accrued expenses, as the timing
of certain expenses varied between quarters. Operating cash flows were also
positively impacted by increased net earnings.
Cash flows required for investing activities increased by $4.8 million for the
first quarter of 2000 when compared to 1999. The increase is a result of
increased other long term assets which was impacted, in part, by premiums paid
on various company policies including executive life insurance.
Cash flows provided by financing activities were $2.9 million compared to cash
required of $.3 million in 1999. Financing activities for the first quarter of
2000 were impacted by the proceeds from revolving lines of credit and long-term
borrowings which exceeded payments on long term borrowings.
The effect of foreign currency translation may result in amounts being shown for
cash flows in the Condensed Consolidated Statement of Cash Flows that are
different from the changes reflected in the respective balance sheet captions.
DIVIDEND POLICY
On February 15, 2000, the Board of Directors for Invacare Corporation declared a
quarterly cash dividend of $.0125 per Common Share to shareholders of record as
of April 3, 2000, to be paid on April 14, 2000. At the current rate, the cash
dividend will amount to $.05 per Common Share on an annual basis.
YEAR 2000 ISSUE
The Year 2000 issue is the result of computer programs being written using the
last two digits rather than four to define the applicable year. Thus, many
programs are unable to properly distinguish between the year 1900 and the year
2000. This is frequently referred to as the "Year 2000 Problem." The company
currently is not aware of any significant problems that have arisen for its
customers and suppliers.
The company completed a comprehensive project, which included the modification
of existing information technology in order to recognize the year 2000 and the
conversion of its critical data processing systems. The project consisted of an
iterative process of assessing, remediating, testing and implementing new
software as required. The company was also in contact with each of its major
customers and vendors to make sure that they were also year 2000 compliant. The
company spent approximately $6.3 million on the project and funded it entirely
through operating cash flows. The estimate includes the cost of a combination of
existing internal and external resources and excludes the costs to upgrade and
replace systems in the normal course of business. The project did not have a
material effect on the company's results of operations or financial position.
The company did not experience any significant malfunctions or errors in its
operating or business systems when the date changed from 1999 to 2000. Based on
operations since January 1, 2000, the company does not expect any significant
12
<PAGE>
impact on its ongoing business as a result of the Year 2000 Problem. However, it
is possible that the full impact of the Year 2000 Problem has not been fully
recognized.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
The company is exposed to market risk through various financial instruments,
including fixed rate and floating rate debt instruments. The Company uses
interest rate swap agreements to mitigate its exposure to interest rate
fluctuations. Based on March 31, 2000 debt levels, a 1% change in interest rates
would impact interest expense by approximately $1,640,000 over the next twelve
months. Additionally, the company operates internationally and as a result is
exposed to foreign currency fluctuations. Specifically, the exposure includes
intercompany loans, and third party sales or payments. In an attempt to reduce
this exposure, foreign currency forward contracts are utilized. The company does
not believe that any potential loss related to these financial instruments will
have a material adverse effect on the company's financial condition or results
of operations.
EURO CONVERSION
On January 1, 1999, 11 of the 15 member countries of the European Union (the
"participating countries") established a fixed rate between their existing
sovereign currencies (the "legacy currencies") and the Euro. The legacy
currencies are scheduled to remain legal tender in the participating countries
between January 1, 1999 and July 1, 2002. Beginning January 1, 2002, the Euro
currency will be introduced and the legacy currencies withdrawn from circulation
six months later. The company believes with modifications to existing computer
software and conversion to new software, the Euro conversion issue will not pose
significant operational problems to its normal business activities. The company
does not expect costs associated with the Euro conversion project to have a
material effect on the company's results of operations or financial position.
FORWARD-LOOKING STATEMENTS
The statements contained in this form 10-Q constitute forward-looking statements
based on current expectations which are covered under the "Safe Harbor"
provision within the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include information concerning our possible or
assumed future results of operations and statements in which we use words such
as "expect," "will," "believe," "anticipate," "intend," "plan," "estimate,"
"project" or similar expressions. Actual results and events, including the
results from the acquisition and integration of Scandinavian Mobility and the
acceleration of certain strategic initiatives for which a non-recurring charge
has been reported, may differ significantly from those anticipated as a result
of risks and uncertainties which include, but are not limited to, pricing
pressures, the consolidations of health care customers and competitors, the
availability of strategic acquisition candidates, government reimbursement
issues including those that affect the viability of customers, the effect in
offering customers competitive financing terms, Invacare's ability to
effectively integrate acquired companies, the difficulties in managing and
operating businesses in many different foreign jurisdictions, the timely
completion of facility consolidations, the overall economic, market and industry
growth conditions, foreign currency and interest rate risk, as well as the risks
described from time to time in Invacare's reports as filed with the Securities
and Exchange Commission.
13
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Item 3. Quantitative and Qualitative Disclosure of Market Risk.
The information called for by this item is provided under the same caption under
Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Item 6. Exhibits and Reports on Form 8-K
A Exhibits:
Official Exhibit No.
(27) Financial Data Schedule
B Reports on Form 8-K: None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INVACARE CORPORATION
By:
Thomas R. Miklich
Chief Financial Officer
Date: May 12, 2000
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-2000
<CASH> 18,648
<SECURITIES> 1,453
<RECEIVABLES> 192,746
<ALLOWANCES> (12,061)
<INVENTORY> 110,080
<CURRENT-ASSETS> 417,927
<PP&E> 253,149
<DEPRECIATION> (113,681)
<TOTAL-ASSETS> 954,212
<CURRENT-LIABILITIES> 172,947
<BONDS> 0
0
0
<COMMON> 7,640
<OTHER-SE> 320,077
<TOTAL-LIABILITY-AND-EQUITY> 954,212
<SALES> 244,303
<TOTAL-REVENUES> 244,303
<CGS> 171,423
<TOTAL-COSTS> 171,423
<OTHER-EXPENSES> 51,425
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,104
<INCOME-PRETAX> 16,351
<INCOME-TAX> 6,377
<INCOME-CONTINUING> 9,974
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,974
<EPS-BASIC> (.33)
<EPS-DILUTED> (.33)
</TABLE>
